Standard and Poor's reports preliminary buyback activity for the fourth quarter of 2012 fell 4.4%. On a year over year basis, buybacks are up 13.2%; however, for the year 2012 buybacks declined 1.5%. On the other hand, dividends in Q4 increased nearly 15% compared to the third quarter and were higher by 21% on a year over year basis. Howard Silverblatt, Senior Index Analyst for S&P Dow Jones Indices noted in the press release,
"For 2013, S&P Dow Jones Indices anticipates that companies will continue to protect their earnings by buying back the number of shares necessary to prevent earnings dilution – something not difficult to do given record levels of cash on hand."
|From The Blog of HORAN Capital Advisors|
Source: S&P Dow Jones Indices